Latin America’s low aggregate productivity growth is reflected in an overwhelming number of one-person enterprises and micro-businesses and a shortage of medium-sized and larger establishments capable of generating quality jobs and productivity gains. Most of these small-scale enterprises stem from lack of opportunities in the labour market and do not have the potential to become dynamic firms. Meanwhile, existing dynamic firms face external and internal restrictions to grow and to create enough high-quality jobs. The CAF Economics and Development Report 2013 emphasizes the role of entrepreneurship as a key factor to Latin America’s development. It does so in a comprehensive way, reviewing not only the impediments for innovative entrepreneurs to realize their projects, but also the reasons why entrepreneurs with less potential opt for entrepreneurial activities instead of a salaried job. One of the report’s main messages is that these two phenomena –constrained growth for dynamic companies and abundance of subsistence entrepreneurs—are closely linked. Recognizing this link is crucial to design entrepreneurship policies which need to adopt a multidimensional approach, integrating things like entrepreneurial talent, innovation fostering, access to finance, and labour training.